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- Originally Posted by Rex‘If an acre of land is going at about Rs 1-2 crore, who will grow castor?’
International airport, sponge iron units trigger uptrend
The agriculture sector is bearing the brunt of development in the periphery of Hydebard with a few thousand hectares of land falling prey to the real estate boom, triggered by the airport project at Shamshabad.
Castor crop is among to be badly hit. Mahboobnagar, which ranks number one in castor area in Andhra Pradesh, has lost 16,250 hectares so far this year. Against the normal area of 1.42 lakh hectares, castor has been in 1.24 lakh ha during the kharif season, that ended earlier this month.
The total castor area in Andhra Pradesh for the year is put at 2.35 lakh ha this year against 2.02 lakh ha last year. The average for last three years is 2.70 lakh ha.
Though Andhra Pradesh has gained some new castor area in districts such as Kurnool, the loss in the traditional areas has not helped in increasing its national share of 25 per cent. Andhra Pradesh ranks second after Gujarat in castor. Gujarat accounts for 65 per cent of India’s castor production.
The figures for Rangareddy district (in which the airport area falls) and Nalgonda areas are no better. Castor area has shrunk by 30-40 per cent in the last two years in these two districts that surround the State capital.
“If an acre of land is going at about Rs 1-2 crore, who will grow castor?” Mr Rajender Prashad Agarwal, President of AP Oil Millers’ Association told Business Line.
Real estate prices
Spurt in sponge iron units along the Shamshabad-Jadcherla belt and the trigger caused by the Outer Ring Road also resulted in steep hike in real estate prices in the traditional castor growing areas. The situation on the Srisailam road too witnessed sharp raise in real estate prices, he said.
Several grape gardens too gave in to the real estate boom, which seems to have slackened of late, in the last three-four years around the State capital.
“Had the State retained the traditional area, we could have increased our share to at least 30 per cent nationally,” Mr Agarwal said.
The real estate boom has resulted in yet another problem for the castor farmers in other surrounding areas. “They are not able to find labour in these areas as most of them would have gone to the city for work,” he said.
This is certainly an issue which needs to be discussed by the state government soon.
Can you send me more details of hike in real estate prices in your area? Please send details about the industrial develpment in the area. Also please send me some information about the housing scenerio in that area.
- don't worry the madness is coming to an end
I am an NRI from UK with long and regular connection with India, UK and US.
I have seen the rise and fall of US & UK real estate cycle twice.
Those cycles have/had the same characteristic as what is happening in India (Except India is more aggressive)
Both equity and real estate Cycle in UK, US &Australia is about a 7-8 year cycle( 4 years Up and 4 years down).
India seems to have longer Cycle 10-12 year (4-5 years of drastic up and 10 of flat to down).
As an economist and a property owner in India and abroad - all I can say is what is happening in India is extreme greed and speculation - This illogical and unsustainable.
I love to see my property value go up but in a sustainable level and in tandem with macro economy.
I have seen dealers/Traders entering in to POWER OF ATTORNEY DEALS and then trading it to third party for a huge profit.
I have seen uneducated brokers/dealers earning up to one crore in 1 year by SWITCHING couple of properties like commodities.
I haven’t seen any market in the world that is so un transparent.
SPECULATION IS THE NAME OF THE GAME IN INDIAN REALESTATE MARKET.
I was quoted 1C for a property in Dec07 and again the same property (Unsold) in March 08 was quoted 1.3C and now in June the same property (Unsold) he is quoting 1.5C in June 08
The vendor has not sold the property in the past 6-8 months how ever he did not fail to increase the asking price by about 30% every 3 Months
As a owner of properties in India, I am saying it is not sustainable.
Greed and speculation will end in pain and COMMONSENCE WILL PREVAIL.
If not 1997 EastAsian economic crisis (Thailand,Malaysia,Indonesia etc) will be repeted in India with a devaluation of rupee followed by inflation linked economic meltdown which would take 10 years to get back on feet.
DON’T FORGET WE LIVE IN A GLOBAL VILLAGE NOW, What happens In US, Middle east or Europe will have direct Impact on India.
What goes around comes around.